The pair witnessed a relatively quiet US session tied to a narrow $1.5628-59 range on Monday. The rate tracked euro-dollar slippage to $1.5628 after dovish comments from ECB’s Draghi/Praet, before it recovered to settle mid-range into the NY close. Euro-sterling encountered strong resistance ahead of stg0.8000 and extended the corrective pullback on broad euro supply to stg0.7955. Opening in Asia at $1.5647 cable met early selling pressure with a move to $1.5634, before a turn in the US dollar provided fresh appetite. The rate quickly pared losses and tracked euro-dollar to print extended highs of $1.5657 where it settled in sideways trade throughout the afternoon session. Tech resistance is seen at $1.5678 (50% of $1.5735-1.5620), a break opens $1.5690 (5-day ma), ahead of offers on approach to $1.5700. Euro-sterling ran into strong demand ahead of stg0.7950 and saw recoveries extend to stg0.7970, before momentum stalled. Offers continue to cap the topside on approach to stg0.8000, through here targets a move towards stg0.8055 (200-day ma). Focustoday turns to the release of UK CPI/PPI data at 0930GMT for direction.
